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Automotive

July 23, 2009

With GM's struggles and plant closings shaking the foundations of what modern Michigan has been built upon, what can take the industry's place?

How about the Motown Motion Picture Studio, housed in a former GM truck plant? Using aggressive incentives, Michigan drew 25 film crews to their state last year--including Clint Eastwood (Gran Torino). Still, a movie studio might equal 3,000 jobs; over 800,000 have been lost in the state since 2000.

They are also courting wind-power, building railroad cars--any industry that could help employ the engineers who have been laid off and can't find similar work.

The state has instituted at 2 year "No Worker Left Behind" free college program--and the colleges are jammed with former autoworkers looking to retrain.

Still, this is the heart of automotive engineering and innovation. There is a concentration of talent--how can Michigan harness these men and women? Imagine what it would look like if a start-up that really changed the game for the auto industry came along. Your thoughts?

July 13, 2009

With the 2010 Ford Taurus, Ford Motor Co. is taking on the Toyota Avalon and the Chrysler 300...and maybe even Audi and Lexus. There are numerous aspects of re-engineering and restyling--ranging from collision warning and blind spot detection. But, is it revamped enough?

The Taurus was a best seller in the 1990s, and it was groundbreaking when introduced in 1986. After all, its aerodynamic design was unique in
the mid-size sedan segment of the day, and it offered tremendous value
versus the competition. That's what made it a bestseller--"hot" design, priced for affordability by the average Joe. It didn't fall from grace until a series of bland redesigns took away its edge. The last one was produced in 2006--and sales to the public had ceased. It became a fleet and rental car.

Today, Ford wants the public to forget that the Taurus was ever a rental/fleet car (or even a cheap car, for that matter) and cough up between 25-37k for the vehicle. Will the public bite on a brand revamp that's going against where the brand began? Cheap to expensive, no frills to frills, head-turning design to respectable design.

Brand redesign and re-introduction

When brand names return to the public, they can usually count of eliciting both nostalgia and sales. However, the most important thing is that it be re-introduced in a way that evokes a sense of excitement and passion. Has Ford succeeded on this point? What's your opinion?

June 25, 2009

As US automakers wring their hands waiting for an auto sales recovery, market firm R.L. Polk and Company says sales in the auto market should be heading up by 2011. The majority of US consumers they surveyed (55%) plan to buy their next vehicle within 2 years. The highest numbers of
purchase intenders were in the Plains states and lowest in the Great
Lakes region. This is obviously good news for automakers who have excess inventory to move.

On the other hand, here are some other pieces of information from the study that aren't as rosy for automakers.

The average length of vehicle ownership is increasing (up to 56.3 months now)

70% of respondents would consider a used vehicle

Two-thirds of people are likely to keep their vehicles longer than they would otherwise

If people are willing to hang onto their cars longer and consider used vehicles, the market for new cars is still looking on the weak side. What's your take?

June 02, 2009

Recently, I wrote about Toyota's choice to stockpile parts (click here to read it) in case any of their parts suppliers went under.

Interestingly, in a survey released last week by Planning Perspectives, Inc, Toyota has moved from a rating of "Good to Very Good" in terms of supplier relations to "Adequate". Suppliers were ranked in areas such as: willingness to help suppliers cut costs, paying for canceled programs and rewarding top suppliers with new business.

Toyota is still above the industry average--while the Detroit 3 are below it. Could this new ranking reflect Toyota's current stockpiling philosophy. Is it, indeed, sending a lack of confidence vote to suppliers at a critical time?

Oh, and the biggest turnaround in the rankings? Ford. I sense some trends starting here...

June 01, 2009

There are few things in life that can make people cringe like the thought of having to go and buy a new car. With so many options, choosing your next car takes a lot of research, not to mention a sizable financial commitment. All of this aside though, the worst part of the experience can sometimes be dealing with the salespeople.

A great article from Edmunds.com allows readers to glimpse inside the world of car sales and see what actually goes on behind those closed doors. In fact, not all of our suspicions are unfounded. The article also helps those of us on the outside understand where the salespeople are coming from, and maybe even sympathize with them a little bit.

Other sites like Car and Driver offer tips for buying a new car, while Consumer Reports helps buyers know in advance if their shiny new toy will be a rattling heap in just a couple of years. The Kelley Blue Book site is also helpful when researching the value of your trade-in or the invoice price for the car you're looking to buy.

Buying a car has always taken a lot of faith since most of us don't have enough of a background in the right areas to know if certain features will really increase our new car's performance or if we're getting the best deal on our payment plan. Knowing how the game is played before walking onto the lot can go a long way in arming you to look out for your own best interests.

May 26, 2009

What is 1,700 miles long and has 28 stops along the West Coast? The annual Hydrogen Road Tour running from May 26 to June 3rd. The rally was begun to demonstrate the viability of hydrogen-powered cars--at each of the 28 stops, the public is welcome to inspect the cars, which include the Honda FCX Clarity, Hyundai Tucson FCEV, Kia Borrego FCEV, Nissan X-Trail, and Toyota FCHV-adv Highlander. A mobile refueling station is along to power up the cars (ranges average between 200 to 500 miles).

Here's the official website. If any of you are along the route and stop to see the tour, I'd love to hear your impressions.

May 20, 2009

What does $134 million buy you? Nine weeks of advertising if you are Chrysler.

The U.S. Treasury's auto-industry task force is giving the automaker half that.
Of course, the marketing people at GM are practically screaming that this move is going to wreck their brand image in the marketplace. (I'm thinking business-as-usual and a lack of innovation has more to do with their current brand image than their ads...)

Interestingly, for five days after their bankruptcy was announced people were offering super-low amounts of money for GM cars, thinking they would have to take anything. (That fallacy has since corrected itself. Can't blame a consumer for trying, though, can you?)

So what messaging is so critical for Chrysler to get out into the marketplace? right now their ad spots are all focused on "Brighter future"--so people won't worry thaqt the brands will be disappearing. Personally, I'd prefer to make up my mind about whether Jeeps are vanishing based on US Court transcripts and business reporting--not what Chrysler and their ad agency is telling me. (see my previous post about people doing their own research)